Fidelity Investments launches real-time fractional shares trading - FinanceFeeds

Fidelity Investments launches real-time fractional shares trading

Maria Nikolova

The simplified way of investing is being rolled out to Fidelity’s retail customers beginning today.

Online brokerage Fidelity Investments today announced availability of real-time fractional shares trading of stocks and ETFs.

This simplified way of investing, also known as dollar-based investing, is being rolled out to Fidelity’s retail customers beginning today and will continue over the next several weeks. It allows investors to trade as little as 0.001 of a share using Fidelity’s Mobile app for iOS and Android.

Fidelity will execute all fractional trades in real-time during market hours, meaning customers will always know the share price. Fractional share or dollar-based trades, which must be market or limit order types and are good for the day only, are available in eligible Fidelity retail accounts, including brokerage, HSAs, IRAs, and self- directed brokerage accounts via a workplace retirement plan.

The brokerage expects investors to use dollar-based trading in a variety of ways. For instance, a customer saves $500 to begin investing in several high-priced companies they have been following for their diversified portfolio. With this new capability the price of a single share is not a concern, and the investor buys $100 worth of shares in five different companies, potentially helping with diversification.

In the fall of last year, another electronic trading major – Interactive Brokers, enabled fractional share trading on its TWS platform.

Read this next

Industry News

BlackRock opens up to Bitcoin investment

The two eligible funds are no lightweights and they contain more than $40.0 billion of assets between them

Industry News

Citi launches a new suite of futures trading algos

Implementation shortfall algorithms are designed to keep or reduce that cost differential (slippage) to a minimum

Inside View

FX brokers are beginning to not just talk about becoming their own ECN or exchange, they are doing it!

FX brokers who do capitalize on the importance of offering a full range of venue-listed products via genuine live market liquidity will be left behind. The b-book OTC world has limited future, and the companies at the top are already working on its replacement. Here is our full analysis

Industry News

China spent a year purging itself of global FX brokers. Now it is about to unleash its own monster

Saxo Bank and eToro knew what they were doing when they sold out to Chinese firms. We look at how the government purged the FX businesses for its own greed and own ends. Now may be the time to consider how to structure a Chinese FX company.

Industry News

The journey towards a consolidated European tape

The chair of ESMA, Steven Maijoor, has bemoaned the lack of such resources., famously saying in the past that: “After nearly 2 years of operating under MiFID II, we’re still lacking a reliable view of liquidity across the EU”

Industry News

Fund managers push back over the FCA clampdown on cryptocurrencies

Assets under management in these types of investments have risen 5 fold over the last 12 months to stand at around €2.30 billion today

Industry News

IG Group impresses with bumper interim figures and plans for a tastytrade in the USA

Not only did turnover increase substantially at IG Group, profitability did as well, and the business made £231.30 million in the first 6 months of the financial year

Industry News

Genesis launches FX Prime Trade Capture application in partnership with Brazilian broker-dealer XP Investimentos

FX Prime also acts as a productivity tool that captures FX & Rates voice business and streams trade activity directly into the Prime Broker while simultaneously serving as placeholder for books and records.

Inside View

Want to get your electronic brokerage business right in Australia? This is how

Now is the time to take heed of the brokers that are doing things the right way in Australia. Here is a full and open discussion with a company that is leading the way.